• To provide quality merchandise and services at competitively low prices.
   
• To generate reasonable earnings which provide a dividend to support morale, welfare and recreation (MWR) programs.

AAFES is a non-appropriated fund instrumentality and operates almost exclusively with funds generated from sales to authorized customers. AAFES works hard to generate a profit, which is then given back to the stockholders, the AAFES customers, in the form of MWR/Services payments and new and improved facilities.

Board of Directors

AAFES is commanded by an Army or Air Force general officer who reports to a Board of Directors. The Secretary of the Army and the Secretary of the Air Force appoint the board members. When one service selects the commander, the other fills the vice commander position. In addition to the AAFES commander and a general officer representing the Reserve Components, board membership consists of:

Army
¥ Deputy Chief of Staff, Logistics
¥ Deputy Assistant Secretary, Human Resources
¥ Commander, Community & Family Support Center
¥ Chairman, AAFES Europe Region Council
¥ General Officer representing Reserve Components
¥ Sergeant Major the Army
¥ Assistant Deputy Chief of Staff for Personnel
¥ Director of Budget
¥ Member at Large (selected by the senior service representative on the board)

Air Force
¥ Deputy Chief of Staff, Installations and Logistics, Installations and Mission Support
¥ Deputy Assistant Secretary, Force Management and Personnel
¥ Deputy Assistant Secretary, Installations and Environment
¥ Deputy Assistant Secretary (Budget)
¥ Director, Air Force Services
¥ Commander, Army and Air Force Exchange Service
¥ Director of Budget Operations
¥ Pacific Air Force Command Representative
¥ Command Chief Master Sergeant of the Air Force

Although AAFES is a worldwide military activity, there are only 72 military positions authorized. AAFES has more than 43,000 civilian associates dedicated to serving our customers in the United States and around the world.

Authorized Patrons

Unlimited Exchange Privileges:

• Active Duty or Reserve Uniformed and Retired Uniformed personnel.
• Recipients of the Congressional Medal of Honor.
• Honorably Discharged Veterans when hospitalized or certified 100% disabled.
• Military Members of Foreign Nations when on duty with U.S. Military Service.
• National Guard not in Federal Service.
• Red Cross Personnel who are U.S. citizens, assigned outside the U.S. with the Military Service.
• U.S. Civilian DoD Employees when stationed outside the U.S.
• U.S. Citizen Employees of Firms under contract to the Department of Defense when employed outside the U.S.
• Military Transition Personnel.
• Retired Ship’s Officers and Crew members of National Oceanic and Atmospheric Association, NOAA.
• Ship’s Officers and Crew members of National Oceanic and Atmospheric Association, NOAA.
• Family members of personnel listed above.
• Contract Surgeons.
• Non-DoD Federal Departments/Agencies as determined by local commanding officer.
• Dependents of members of the Armed Forces, Commissioned Officers of the Public Health Service, and Commissioned Officers of the National Oceanic and Atmospheric Association, Separated for Dependent Abuse.

• U.S. Government Civilian Employees and Full-time Paid Staff of the Red Cross who reside on military installations within the U.S. or Puerto Rico.
• Armed Forces Exchange Employees.
• DoD Civilian Employees on Evacuation Orders.
• Family members of the personnel mentioned above.
• DoD Civilians on Temporary Duty status when occupying Government quarters in the U.S.
• Civilian Employees of the U.S. Government working on, but residing off, Military Installations are authorized to purchase all food and beverages sold at exchange locations, if consumed on post.
• Uniformed and Non-Uniformed Personnel working in recognized welfare service organization offices within an Activity of the Military Service are authorized to purchase all food and beverages sold at exchange locations, if consumed on post.
• Visitors to Military installations are authorized to purchase all food and beverages sold at exchange locations, if consumed on post.
• Contract Technical Services Personnel in travel status; Army, Navy, Air Force Academy Applicants when occupying Government quarters in the U.S.
• Foreign National Active Duty Officer and Enlisted Members, when visiting U.S. Military Installation for unofficial business. Merchandise is restricted to quantities required for personal use.
• Service members in Civil Air Patrol in travel status and occupying Government quarters on a DoD Installation may purchase uniform items when Civil Air Patrol membership card is shown.
• Civil Air Patrol Cadets may purchase uniform items when Civil Air Patrol membership card is shown and all food and beverages sold at exchange locations, if consumed on post.
• Members of the Officer Reserve Training Corps and Junior Reserve Officer Training Corps when visiting installations under orders as part of a Service orientation program.
• Members of the Naval Sea Cadets attending two week training course, if occupying Government quarters on a Military installation.
• Coast Guard Auxiliary Members.
• Civilian Students and Faculty Members at Service Schools may purchase books, supplies and materials related to the educational process, only at exchange facilities that support the school.
• Hardship – Persons who are “stranded on an installation” may purchase small quantities of gasoline, oil, other automotive items, or items necessary for an individual’s health.
• DoD Civilian Employees using Government-authorized vehicles for official business may purchase gasoline for those vehicles.

Only authorized patrons are entitled to exchange privileges, except when prohibited by treaty or other international agreements in foreign countries. For more information about authorized patrons, go to: DODI 1330.21 Armed Services Exchange Regulations.

Merchandise Restrictions

Exchanges in CONUS may not sell:

• Diamond settings with individual stones that exceed one-and-one-half carat.
• Jewelry other than diamond jewelry with a per-unit cost to the exchange in excess of the cost price of 2 ounces of gold.
• Finished furniture with a per-unit (piece) cost to the exchange in excess of $1,100.
• Decorative housewares or furnishings with per unit (piece) cost to the exchange in excess of $500.
• Small appliances with a per-unit (piece) cost to the exchange in excess of $150 except there is no cost limitation on floor polishers, food processors, fans, coffee makers, humidifiers, air purifiers, microwave ovens, refrigerators, rotisseries, broilers, and vacuum cleaners.
• Recreational boats with a per-unit cost to the exchange in excess of $750.
• Sports equipment and supplies; recreational, garden and manual arts equipment; and photo supplies and film with a per-unit cost to the exchange in excess of $750.

For more information about merchandise restrictions, go to: DODI 1330.21 Armed Services Exchange Regulations.

AAFES Legal Status

AAFES’ legal status is unique and complex. As a non-appropriated fund instrumentality, AAFES enjoys the same sovereign immunity as the rest of the government. However, not every federal regulation applies to AAFES, even those that apply to installation MWR/Services activities. AAFES also has internal policies and procedures that may or may not be similar to MWR/Services or other non-appropriated fund activities. Different legal principles apply to AAFES contractors.

For legal questions regarding AAFES activities on an installation contact a member of the Staff Judge Advocate staff to contact the AAFES Office of the General Counsel at (214) 312-6632. Questions may be referred to an attorney with specific expertise in that area of law. Information about the AAFES Office of the General Counsel may be found on the General Counsel’s page of the AAFES website at www.aafes.com.

AAFES-MWR/Services Partnerships

AAFES generates earnings to support Army and Air Force Morale, Welfare and Recreation/Services programs. AAFES earns over 4 cents on each sales dollar. These earnings are returned to the Army and the Air Force in two ways:

• Nearly 70 percent of earnings are paid as dividends to the MWR fund.
   
• The remainder of funds goes into the AAFES Capital Program to build new facilities and renovate others.

Construction work on exchange facilities today is done almost exclusively with AAFES earnings. Every purchase in an exchange facility enhances AAFES dividends, and a portion of all dividends is provided to the installation where the purchase was made.

Requesting AAFES Support in the Field

AAFES has nearly 10,000 facilities serving Soldiers, Airmen and their Families from the Korean peninsula to the jungles of Central America from the largest Army posts and Air Force bases to the most remote locations around the world.

There are three levels of field support available for military operations and training exercises worldwide. The level provided depends upon the distance to the exchange, duration of and size of the operation to be supported. Contact the AAFES General Manager nearest the site to be supported. The General Manager will advise which of the following levels of support are appropriate for the requirement:

AAFES Imprest Fund Activity (AIFA):
An AIFA is a military-operated activity, usually in a small or remote site, where a regular direct-operation exchange can’t be provided. The inventory has a small dollar value, normally less than $15K. On an exception basis, the inventory can be approved for up to $50K by the AAFES Europe Commander. AIFAs are satellite activities of an AAFES-run facility, and can be operated for an indefinite period of time. The supported unit appoints an Officer-in-Charge, who is issued an initial inventory and/or funds by AAFES to purchase a beginning inventory. Money generated from sales is used to replenish the merchandise stock and does not go to the unit. The unit is responsible for re-supply, to include ordering and transporting merchandise. An AIFA Imprest Fund Guide for Commanders is available from a local AAFES representative. It covers in detail all the features of this program. Currently AAFES supports 35 Imprest Fund Sites in OEF/OIF locations.

Store-in-a-Box

Store-in-a-Box.
Military personnel assigned or attached to the supported unit operate a Store-in-a-Box. It is used where military personnel strength is relatively large but located in a hostile or potentially hostile environment. The supported commander or higher headquarters must identify military personnel to operate Store-in-a-Box. The Store-in-a-Box provides basic health, hygiene, and personal care items.

Mobile Field Exchange (MFE).
A Mobile Field Exchange (MFE) is the "mobile" exchange in the AAFES inventory. A MFE has theh ability to deploy within 48 hours of approved request to support troops worldwide operations such as disaster relief efforts unit exercises and contingencies. the 53-ft. long trailer is lined with shelves of AAFES-supplied merchandise to include hygiene products, snacks, drinks and other essentials. AAFES associates operate the MFE and have full satellite and IT capabilities to serve troops.

Direct Operation Exchange-Tactical (DOX-T).
DOX-T provides the same level of support as the Store-in-a-Box except it is operated by AAFES personnel assigned or attached to the parent exchange. DOX-Ts will usually replace TFEs as soon as areas are secure enough for noncombatant civilian personnel to be inserted. The stock assortment and services can be expanded significantly depending on the availability of transportation and facilities to support the AAFES operation.

Please include AAFES support in the exercise planning process to ensure that the level of support desired is available when needed. Contact the Strategic Plans Division at AAFES Headquarters at (214) 312-4161 or DSN 967-4161 for assistance.

Identifying Installation Needs

The AAFES Capital Improvement Program, like most retailers, invests capital dollars to maintain the competitive standing of its existing facilities. Here’s how our requirement determination process works. Our Corporate Analysis office uses mechanized programs to forecast sales and earning opportunities. They also subset down to individual facilities. No one else in AAFES, including operators in the field, has the capability to objectively analyze need and potential.

The HQ Sales Directorate (SD) in Dallas, Texas is the driver behind all strategies relative to our retail, food and services business areas. SD is composed of various category teams, who focus on all aspects of a business, ranging from stock assortments and price points, to where the item will be located in the store. Facility sales and space requirements are a clear part of this process. All developed strategies tie into the overall AAFES Master Plan.

All project proposals are fully coordinated with the regions and installation commanders before they are sent to the Real Estate Directorate (RE) for project development. Commanders are encouraged to identify projects with their local General Manager at the time. The AAFES Command Engineer and Strategic Business Groups will visit the installation to assess feasibility of initiative and work with command to find viable solutions.

Requesting New Construction (Fast-Food)

If commanders want a name-brand fast-food operation on the installation, the first step is to contact the General Manager. The General Manager will then send the requirement through the AAFES chain of command to HQ AAFES. HQ AAFES will validate the requirement and, where justified, include it in the Name-Brand Fast-Food Program.

Communities of Excellence Programs

AAFES fully supports the Army Communities of Excellence Program, as well as the Air Force Installation Excellence Awards. The keys to success are open communication, taking into consideration all aspects of a proposed project, using the strengths of the installation’s local knowledge, and AAFES experience in retail construction. AAFES brings to the decision process years of good business experience in balancing proposed work against sound economics.